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Bitcoin Nears Record High, Approaches $124,000 Amid Strong Demand

Analysts see strong momentum driven by investor demand and expectations of lower interest rates.

  • Bitcoin prices neared $124,000 on October 3, approaching a record high.
  • Recent U.S. economic data has increased speculation about a Federal Reserve rate cut, boosting risk appetite.
  • Spot Bitcoin ETFs and higher U.S. investor activity support current price levels.
  • Limited supply and institutional buying continue to reinforce upward pressure on Bitcoin’s value.

Bitcoin prices surged to nearly $124,000 on October 3 as rising demand and strong buying activity pushed the digital currency close to an all-time high. The world’s largest cryptocurrency, measured by total market value, reached its highest level since August, according to Coinbase data from TradingView.

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Analysts pointed to rapid price momentum and increasing investor confidence. George Kailas, CEO of Prospero.ai, said in an email, “We are in one of the most momentum-driven markets I’ve ever seen. Recently, that momentum has been fueled by growing confidence that rate cuts will continue.”

Brett Sifling, wealth manager at Gerber Kawasaki Wealth & Investment Management, explained that softer-than-expected U.S. jobs data has increased the odds of a Federal Reserve interest rate cut in October. He stated, “Lower rates means that risk-on assets like Bitcoin will generally be viewed favorably by market participants.” Sifling also noted strong demand for spot Bitcoin ETFs and the seasonally positive market environment in October, sometimes called “Uptober” in the crypto community.

Additional commentary from Joe DiPasquale, CEO of BitBull Capital, highlighted several factors driving up Bitcoin’s price: “Strong inflows into spot ETFs and institutional demand are providing steady buying pressure, while expectations of Fed easing have boosted appetite for risk assets. At the same time, U.S. political uncertainty and supply constraints following the halving have reinforced the ‘digital Gold’ narrative.” In cryptocurrency, a “halving” refers to a scheduled event that reduces new Bitcoin supply, which can limit availability and impact prices.

Julio Moreno, head of research at CryptoQuant, pointed out that higher U.S. investor demand is visible through the Coinbase Premium Index, which measures the price difference between Coinbase Pro and Binance’s U.S. dollar-pegged pairs. Moreno explained, “This price upward movement has been mostly supported by a relatively higher investor demand in the US, as seen by an increasing Bitcoin Price premium on Coinbase, which is at the highest level since June 7.” He added that strong U.S. activity is typical in Bitcoin bull markets.

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Looking at broader trends, Tim Enneking, managing partner at Psalion, said, “For most of this year, the number of BTC purchased by public institutions has significantly exceeded the number generated by miners. Given such a supply-and-demand dynamic, the price really only has one direction to go.”

Overall, Bitcoin’s recent price surge is backed by increased U.S. investor demand, expectations of future rate cuts, continued institutional purchases, and limited new supply coming onto the market.

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